Hamburg Rules: UN Convention on the Carriage of Goods

• The United Nations Convention on the Carriage of Goods by Sea was adopted on March 31, 1978, in Hamburg, Federal Republic of Germany.
• Commonly known as the Hamburg Rules.
• This was drafted by the United Nations Commission on International Trade Law (UNCITRAL).

General Provisions (Part I)

• "Carrier" is any person who concludes a contract of carriage of goods by sea with a shipper.
• "Actual carrier" is someone entrusted by the carrier to perform the carriage of goods.
• "Shipper refers to an individual or entity engaged in the process of transporting goods, products, or materials from one location to another, often playing a critical role in the supply chain and logistics industry. The function of a shipper can encompass a wide range of responsibilities, including the selection of appropriate transportation methods, packaging, labeling, and ensuring compliance with regulations. Shippers often collaborate closely with carriers, freight forwarders, and logistics providers to streamline the shipping process, enhance efficiency, and reduce costs. Understanding the intricacies of shipping procedures, customs regulations, and documentation requirements is essential for effective shipment management." is a person who concludes a contract of carriage with a carrier, or delivers goods to the carrier for carriage.
• "Consignee" is the person entitled to take delivery of the goods.
• "Goods" include live animals
• Where goods are consolidated, "goods" includes the transport article/packaging if supplied by the shipper.
• "Contract of carriage by sea" is any contract for the carrier to transport goods by sea for freight payment.
• If a contract involves sea and land carriage, deems sea carriage only relates to the sea part.
• "Bill of lading" is a document evidencing a contract of carriage by sea, acknowledges receipt/loading of goods and contains carrier's undertaking to deliver goods against surrender of the document.
• Delivering goods to "order" constitutes an undertaking.
• "Writing" includes telegram and telex.
• The provisions are applicable to contracts of carriage by sea between two different states.
• This is applicable to any case where the port of loading is located in a contracting state.
• This is applicable to any case where the port of discharge is located in a contracting state.
• This is applicable to any case where one of the optional ports of discharge is located in a contracting state.
• This is applicable to any case where the bill of lading is issued in a contracting state.
• This is applicable to any case where the bill of lading provides that the provision of this convention is to govern.
• The provisions are applicable regardless of the nationalities of involved parties
• Convention is not applicable to charter-parties
• The provisions apply to bills of lading issued to a charter-party if it governs relations between the carrier and the holder
• The convention applies to each shipment where a contract provides for series of shipments over an agreed period
• It also applies where a shipment is made under a charter-party

Liability of the Carrier (Part II)

• The convention should be interpreted with regard to its international character and the need to promote uniformity.
• The carrier is responsible for goods during the period they are in charge; at the port of loading, during carriage, and port of discharge.
• Carrier is deemed in charge of goods from when they're taken over from the shipper or a third party at the port of loading
• These goods will remain in the carrier's control until they are handed over to the consignee, placed at their disposal, or handed over to a third party at the port of discharge.
• References to the carrier include their servants/agents
• The carrier is liable for loss, damage, or delay if it occurs while goods are in their charge.
• Except if the carrier proves all reasonable measures were taken to avoid the event and its consequences.
• Delay in delivery occurs when goods are not delivered within the agreed time at the discharge port, or within a reasonable time for a diligent carrier, regarding the circumstances.
• If goods are not delivered per Article 4 within 60 days of the delivery time expiry, the claimant may treat them as lost.
• The carrier is liable for loss, damage, or delay caused by fire if the claimant proves the fire was due to the carrier's fault, or if the claimant can prove it resulted from failure to take reasonable fire safety measures on behalf of the carrier.
• If a fire affects the goods, a survey into the cause must be held if either party desires, and the surveyor's report must be made available to both.
• Regarding live animals, the carrier isn't liable for loss, damage, or delay from special risks inherent in that carriage.
• The carrier isn't liable if they can prove compliance with shipper instructions and attribute the event to such risks.
• Unless proof that fault/neglect on their part caused all/part of the issue.
• The carrier is not liable, except in general average, where loss, damage or delay in delivery resulted from measures to save life or from reasonable measures to save property at sea.
• If the carrier's fault combines with another cause to produce loss, the carrier's liable only to the extent the event is attributable to their fault, provided they prove what isn't attributable to their negligence.
• Carrier liability for loss of/damage to goods is limited to 835 units of account per package/shipping unit or 2.5 units of account per kg of gross weight, whichever is higher.
• Delay liability is limited to 2.5 times the freight payable for the delayed goods, not exceeding total freight
• In no case the aggregate liability of the carrier exceed the limitation for total loss under subparagraph Article 6 clause 1(a)

Limits of Liability Provisions

• When calculating which amount is higher for limit of liability : Containers/pallets consolidate goods, items enumerated in the bill of lading/transport document are deemed packages/shipping units.
• The goods in that case are deemed one shipping unit unless otherwise specified
• If the transport article itself is lost/damaged, it is considered one separate shipping unit if not owned/supplied by the carrier.
• Unit of account is mentioned in Article 26.
• Higher limits of liability may be fixed by agreement between the carrier and the shipper.
• Defences & liability limits apply in any action against the carrier for loss/damage/delay.
• This is the case whether the action is in contract, tort, or otherwise.
• If an action's brought against the carrier’s agent, and they were acting within their employment, they're entitled to the same defences & liability limits as the carrier
• Recoverable amounts from the carrier and related persons can't exceed the liability limits provided.
• The carrier is not entitled to limit liability per article 6 if loss/damage/delay resulted from their intentional/reckless act/omission with knowledge such events would probably result.
• Agent or servant are not entitled to limit of liability benefit as well

Deck Cargo

• The carrier can carry goods on deck only per shipper agreement, trade usage, or statutory rules/regulations.
• If the carrier and shipper agree to it, the carrier must state it on the bill of lading/transport document.
• If lacking such a statement, proving an agreement falls on the carrier, and they can't invoke it against a third party with a bill of lading in good faith.
• If goods are carried on deck against provisions in Article 9, or where an agreement cannot be invoked, the carrier's liable for loss, damage, or delay solely from on-deck carriage.
• Their liability's determined per Article 6 or 8.
• Carriage of goods on deck contrary to express agreement for carriage under deck is deemed to be an act of the carrier per Article 8.

Carrier and Actual Carrier

• If carriage performance is entrusted to an actual carrier, the initial carrier remains responsible for the carriage in accordance with these provisions.
• The initial carrier is responsible for the actual carrier's acts/omissions and their personnel within their employment scope.
• The actual carrier also has the same responsibility as initial carrier's
• The actual carrier has the same right to defence as initial carrier
• If the carrier assumes obligations/waives rights beyond those under the Convention, it only binds the actual carrier if they expressly agree in writing
• The carrier nevertheless remains bound by the resulting obligations/waivers
• If both carriers are liable, their liability is joint and several.
• Amounts recoverable from all parties should not exceed set liability limits.
• Article 10 does not impede any right of recourse between carriers.
• If the contract explicitly specifies a part of the carriage performed by a named person, it may also state they're not liable for loss/damage during that part while goods are in that person’s charge for an occurrence there.
• This is without effect unless judicial proceedings can be instituted against the actual carrier in a competent court per Article 21 - proving that any loss/damage was indeed caused by an occurrence rests upon the original carrier.
• Per Article 10 clause 2, the actual carrier is responsible for loss/damage/delay caused while the goods are in their charge.

Liability of the Shipper (Part III)

• The shipper isn't liable for loss/damage sustained by the carrier etc., unless caused by fault/neglect of the shipper, their servants, etc.
• The shipper must suitably mark/label dangerous goods as dangerous.
• When shipper hands over dangerous goods to the carrier, the shipper must inform the carrier on the relevant information
• Failure to do so results in liability of any actual loss sustained by the carrier
• Goods may be destroyed without any compensation
• Paragraph 2 may not be invoked by any person if such person has the knowledge of the dangerous nature of the goods
• If paragraph 2 cannot be applied, carrier can still destroy such dangerous goods without compensation except where there is general average or the carrier is liable per article 5

Transport Documents (Part IV)

• The carrier must issue a bill of lading on demand of the shipper when the carrier takes the goods
• A personal with authority can sign the bill of lading
• A bill of lading signed by the ship master is deemed to be signed on behalf of the carrier
• The bill of lading can be in handwriting, printed, stamped or through mechanical/electronic means if it does not violate the local law
• Bill of lading must include following particulars: nature of goods, identifying marks, dangerous character statement (if needed), the number of packages, the weight/quantity, etc.
• It also requires the apparent condition of the goods, business address of carrier, name of shipper, the consignee (if named), the loading and discharge ports with their date, number of originals, place of insurance, the carrier's signature
• Indicate freight payable by consignee and any statement referred to paragraph 3 of article 23
• A statement whether the goods are carried on deck and periods for delivery at discharge port if agreed between the involved parties as well as liability where agreed for per article 6 paragraph 4
• Carrier must issue a shipped bill of lading if demanded, it must state the goods are on board and the dates
• Earlier document must be surrendered in exchange for a shipped bill of lading
• The carrier can amend earlier issued documents to meet the shipper's demands
• All required information must be included in an amended document in a shipped bill of lading.
• Absence to one or more particulars must still meet requirements of paragraph 7 of article 1
• If the bill of lading contains particulars that the carrier knows to be untrue including weight ,they should insert a reservation
• The bill of lading containing particulars or no apparent condition means that the goods were noted to be in a good condition
• The bill of lading is prima facie evidence of taking over the goods described and loading of shipped goods, except reservations permitted.
• the proof to the contrary by the carrier is not admissible if the bill of lading is already transferred
• If the bill of lading does not sets the freight, if it is payable by the consignee it is prima evidence
• Proof to the contrary is not admissable when the 3rd party has acted in good faith on the belief that no such indication will occur
• The shipper is deemed to ensure the quality of the item and must pay the carrier if something inaccurate occurs and remains stable regardless of the bill, the carrier has no right to indemnity

Rules Regarding Loss (Part V)

• Any letter of guarantee is avoid toward any third party
• In a case of omission, if the carrier intended to defraud third party
• Carrier is responsible without the limits of liability
• In a case of a bill of lading, it is evidence of conclusion of the contract
• Notice of loss must be given by the consignee in writing no later than the working day after the day when the goods were handed over to the consignee.
• The handing over is a prima facie evidence as transported (or in good condition if no document)
• Not in writing within 15 consecutive days after is still alright if loss isn't apparent
• Any loss is waived if it is subjected to joint surveyor inspection
• Consignees must give a facility if surveyor is approved
• No compensation for delay and goods not delivered unless notice given
• Delivery by the actual carrier will same effect as actual carrier.
• The notice of damages within 90 days is prima facie evidence that the shipper sustained no loss or damage.
• Notice can include master ship.
• The process of damage under this convention is time barred in two years
• That date can be extended.
• Action to the carrier must be in writing
• There are options for judicial proceedings.
• After the agreement from claim from the sea
• Arbitration is effective if the action effective
• At the option of the claimant
• The parties must be under convention
• The provision are deemed as party
• Agreements on arbitration are null and void

Supplementary Provisions

• Any contractual stipulation is null and avoid
• If the conditions derive of the convention
• A clause of assignment is void
• The responsibilities are increased per state
• An issued bill of lading should contain a statement
• An issued bill will result in compensation
• Nothing will avoid the application of law
• The liability of carrier will be compensated by the signee
• Not modified by international conventions

Final Clauses (Part VII)

• Secretary of general is the designated for convention
• The signature is open to all and is subject to all states
• There are no reservations to this convention.
• The convention becomes effective upon its issue
• The denunciation of conventions are followed when state is followed
• 1/3 of the contracting parties to revise it.
• A conference for the parties involved must occur
• Instruments can be accepted.
• A revision conference must have 2/3 majority
• This conference is where revisions can be made for amount specified
• There is a denunciation at any time depending on notification

Common Understanding

• Liability of the carrier is based on the principle of neglect.
• The burden is on the carrier
• This is based on UNCITRAL
• They focus of liability of a carrier

Background to Hamburg Rules

• Result of the movement to make a uniform law
• These are based on the Hague rules as adopted from Brussels
• There is a need to excersise diligence to make ship see worthy based on goods carrid

Dissatisfaction with Hague Rules

• Favor the carriers expense
• There were many ambiguous provisions that favored carriers
• Developments in a shipping environment are inappropriate

Revising Law of Goods by Sea

• Revising of goods by sea comes from UNCTAD
• This results from wanting balances